Combined Items - Pack Size Changes - FAQs
Overview:
If you select to change the Pack Size or Count Unit description for a combined item, COGS-Well will prompt you for a "Conversion Factor". If not ignored, the conversion factor will update your historical transaction quantities to reflect the new Pack Size or Count Unit description. An example of a Pack Conversion Factor Request is below:
Why is a Conversion Factor Needed:
COGS-Well will always use the current Pack Size and Count Unit description for the combined items included in a report. So if you run a report for a date range where a Combined Item had a different Pack Size or Count Unit description, the conversion factor updates the historical transaction quantities to reflect the new pack size or count units.
If you are making Pack Size or Count Unit changes to combined items (or considering making them), and this article does not answer all of your questions, or if you still have any uncertainties, please contact COGS-Well support (support@cogs-well.com) for assistance.
When to Enter or Ignore a Conversion Factor Request:
Any time a change is made to a pack size or count unit description, a conversion factor will be requested. It is important to understand when to enter a conversion factor and when you can ignore the request.
Conversion factors update historical transaction quantities to reflect the new pack or count unit description. Therefore, the decision to either ignore or enter a conversion factor should always be made based on your transaction history for an item.
Ignore the Conversion Factor Request: If you are correcting the pack size for an item, and the historical transactions were recorded using the same incorrect pack size, then you can correct the pack size and ignore the pack conversion factor request.
Enter a Conversion Factor: If you are changing the pack size for an item because you desire to use a new one going forward, and the historical transactions were recorded using the correct prior pack size, then you should enter a pack conversion factor.
The historical Pack Size for a combined item is correct if the Pack Size reflects the correct Pack Cost for historical transactions such as counts or transfers.
Audit Historical Transactions:
As mentioned above, historical transactions will guide you on whether to ignore or enter a conversion factor. The easy way to audit historical transactions is to use the Item Activity Listing. For this example, we plan to change the pack size for a combined item named Milk.
In the below example, we have navigated to Inventory>Listings>Item Activity. We then selected a 12 prior month's date range and selected the combined item for Milk. Tabs on the listing will show all transaction types that have transaction history such as counts, transfers, and receipts:
Conversion Factors for Pack Size Changes:
We will start by discussing requests for Pack conversion factors for combined items. A pack conversion factor request will appear every time you change a pack size and select to save the change. We will first review when you can ignore the request and then review when you need to enter a pack conversion factor.
When to Ignore a Pack Size Conversion Factor Request:
In the below example for the Milk combined item, we have discovered that the Pack Cost is actually for a Pack Size of Gallon, not Half Gallon:
Let's assume that we have discovered that the Half Gallon Pack Size we have been using for the Milk combined item in the example above is incorrect. The pack size should be a Gallon because the pack cost of just over $3.00 is the cost for a Gallon versus a Half Gallon.
Before we make the pack size change, we need to determine whether the historical transactions for Milk have been recorded using the correct or incorrect pack size. Using the Item Activity example above, we can determine that the historical transactions also have the incorrect Half Gallon pack size
Important: If you are correcting a Pack Size and the historical transactions for the item have used the same incorrect Pack Size, then you can ignore the conversion factor request.
The reason no conversion factor is needed is because the pack cost and transaction quantities are recorded correctly and only the pack size is incorrect. We, therefore, don't need to change anything other than the pack size for the historical transactions to report correctly.
If we delete and type in the new "Gallon" pack size description, we can select Gallon from the drop-down list. This will automatically up the recipe unit and count unit configuration for Milk. If we select to save Milk, we will be asked for a pack conversion factor as shown below.
The Activity Listing in the example above verifies that all transactions have been recorded using the Half Gallon incorrect pack size. The pack cost and transaction quantities are accurate and only the pack size is incorrect.
We can, therefore, change the pack size to Gallon and select the button to ignore the conversion request. As an FYI, selecting to ignore a conversion factor is the same as selecting 1 as the factor and then selecting to continue. A selection to ignore will save the item and we are now done.
When to Enter a Pack Conversion Factor:
Let's stay with the Milk combined item and assume that we want to change the pack size from Half Gallon to a Gallon for future count and transfer entry purposes. Let's also assume that the pack size is correct for the transactions for Milk on the Item Activity Listing example above (the pack cost of just over $3.00 does reflect a Half Gallon pack size).
Important: If you are changing a Pack Size and the historical transactions for the item have been recorded using the correct Pack Size, then you should enter a conversion factor. A historical transaction is correct if the pack size reflects the pack cost.
In the below example, we have changed the pack size for the Milk combined item from Half Gallon to Gallon and then selected to save the item. The pack conversion factor request window is displayed because a change to the pack size description always invokes the request for a pack conversion factor. An example is shown below:
A conversion factor request asks how many new packs are in the old pack. The formula for a pack conversion factor is to divide the old pack size by the new pack size and the prompt for this formula can also be reversed (divide the new pack size by the old pack size).
In the above example, the Pack Size was changed from Half Gallon to Gallon. To update the historical transaction quantities to use the new Gallon Pack Size description, you will need to enter a conversion factor when prompted (the old pack size Half Gallon is divided by the new pack size Gallon = .5).
Reverse the Conversion Factor: To make the math easier for some conversions, you can reverse the Pack Conversion Factor prompt by clicking the double arrow button next to the conversion factor. An example is shown below:
After the correct pack conversion factor is entered or verified, we can select to save the item. A confirmation window showing the change or changes that will be saved will display and provide an option to say yes or no. An example is below:
Conversion Factors for Count Unit Changes:
We will now review requests for Count Unit conversion factors for combined items. A count unit conversion factor request will appear every time you change a count unit description, and do not change the pack size. We will first review when you can ignore the request and then when you need to enter a pack conversion factor.
When to Ignore the Count Unit Conversion Factor:
Important: You can select to Ignore a count unit conversion factor request if the only change is the name (such as changing Each to Bottle) and the number of count units per pack does not change. An example is below:
In the example above, we have changed the Count Unit for Milk from Each to Carton, without changing the Pack Size. When we saved the change, we were prompted for a count unit conversion factor.
We are not changing the number of Count Units per Pack so we can select to Ignore the conversion factor. Ignoring the factor is the same as entering 1 and selecting to continue. A selection to ignore will save the item and we are now done.
When to Enter a Count Unit Conversion Factor:
Important: Count Unit Conversion Factors will only be requested if you have added or changed a count unit description without changing the pack size. A conversion factor only needs to be entered when you add or change the number of count units per pack.
In the example below, we are looking at the inventory information for the combined item for Eggs. We can see that these eggs have a 15-dozen pack size. Dozen is the count unit description, and we have 15 dozen in a pack:
Let’s say that we want to change the count unit description from Dozen to Each so we can count or transfer individual eggs when we don’t have a full pack. In the below example, we have changed the count unit to “Each” and we have updated the count units per pack to 180 (15 X 12 = 180):
Note: A good habit to develop is to always make sure the number of count units per pack is correct after you change a count unit description. There is no automatic configuration for the number of count units per pack unless the pack size is also changed.
In the above example, we have not changed the pack size and we have changed the count unit description. Therefore, when we select to save this change, a count unit conversion factor will be requested as shown below:
The conversion factor in the above example is requesting each per dozen. In plain English, it wants to know how many eggs are in a dozen. The math for this calculation is one dozen divided by each. This equates to 12 divided by 1. In this example, the conversion factor is 12.
We will, therefore, update the conversion factor to 12 and select to continue. A confirmation window like the one below will then appear:
The confirmation window in the example above restates the count unit description change and the selected conversion factor and provides the opportunity to select yes to continue or no to go back to the item. If yes is selected then we will be returned to the inventory item grid.
New Count Unit Description: If you enter a count description and the number of units per pack for an item for the first time, you will be asked for a conversion factor. The factor should always equal the number of the new count units that are in a pack.
Summary:
Conversion Factors are important for reporting accuracy and they can be confusing so please never hesitate to contact us at support@cogs-well.com if you think you need to change a Pack Size or Count Unit and you have questions. We are happy to coach you through the process.
Save, Delete, and Exit
At the bottom of the screen are the Save, Delete, and Exit buttons.
Save - Saves the entry or entries without exiting.
Delete - Deletes the Group. You will be asked, "Are you sure"?
Exit - Exits without saving any new entries or edits.